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S-Enjoy Service Group (1755) investor relations material
S-Enjoy Service Group H1 2024 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Revenue for the first half of 2024 reached RMB2,770.4 million, up 3.3% year-over-year, mainly driven by property management services growth.
Net profit attributable to owners was RMB301.6 million, a 2.7% increase year-over-year, with a net profit margin of 12.0%.
Operating cash inflow improved to RMB20.6 million from the previous year.
Property management services revenue grew 12.6% year-over-year, while community-related and developer-related value-added services declined 8.8% and 22.3%, respectively.
Strategic shift underway toward existing residential markets and recurring community services, with a focus on profitability and professionalization.
Financial highlights
Property management services revenue was RMB1,907.9 million (+12.6% YoY), accounting for 68.9% of total revenue.
Community-related value-added services revenue declined 8.8% to RMB645.9 million, with recurring services now 84.9% of segment revenue.
Developer-related value-added services revenue dropped 22.3% to RMB216.6 million.
Gross profit increased 5.0% to RMB753.2 million; gross margin rose to 27.2% from 26.8%.
Basic and diluted EPS were both RMB0.35, up from RMB0.34 year-over-year.
Outlook and guidance
Strategic focus is shifting from new construction projects to the existing residential market due to reduced opportunities and increased uncertainty in new builds.
The company aims to enhance profitability and scale in recurring community value-added services, with ongoing organizational and process improvements.
Continued focus on high-quality development and reducing reliance on real estate developer services.
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